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Vocera Announces Fourth Quarter Revenue of $45.5 Million

Thursday, February 8, 2018
SAN JOSE, Calif.
February 8, 2018

SAN JOSE, Calif.--(BUSINESS WIRE)--
Vocera
Communications, Inc. (NYSE:VCRA), a recognized leader in clinical
communication and workflow solutions, today reported total revenue of
$45.5 million for the fourth quarter of 2017, an increase of 26%
compared to revenue of $36.0 million in the fourth quarter of 2016.

“Our fourth quarter was full of accomplishments, closing out a truly
great year for Vocera, with 27% annual revenue growth and solid
profitability gains. Our solutions continue to transform communications
and workflow in the healthcare space,” said Brent Lang, president and
CEO of Vocera. “The addition of Engage software to our platform has
changed the tone of the conversation and secured us a meaningful seat at
the table with hospitals as they set their IT spending priorities.”

Fourth quarter of 2017 financial highlights include:

Total revenue of $45.5 million, up 26% year-over-year

GAAP net income per share of $0.09; non-GAAP net income per share of
$0.29

GAAP net income of $2.7 million; Adjusted EBITDA of $9.3 million

Full-year bookings of $166.2 million, up 16% year-over-year

Deferred revenue of $63.7 million; and backlog of $64.4 million as of
December 31, 2017

Cash, cash equivalents and short-term investments of $81.2 million as
of December 31, 2017; no debt

Fourth Quarter 2017 Results

Total revenue for the fourth quarter of 2017 was $45.5 million, compared
to $36.0 million in the fourth quarter of 2016.

(in thousands)

Three months ended December 31,

2017

2016

% change

Product revenue

Device

$

15,827

$

13,521

17.1

%

Software

9,098

6,339

43.5

Total product

$

24,925

$

19,860

25.5

%

Service revenue

Maintenance and support

$

14,361

$

11,676

23.0

%

Professional services and training

6,217

4,476

38.9

Total service

20,578

16,152

27.4

Total revenue

$

45,503

$

36,012

26.4

%

GAAP gross margin for the fourth quarter of 2017 was 64.5%, compared to
59.4% in the fourth quarter of 2016.

Three months ended December 31,

2017

2016

Gross margin

Product

72.6

%

68.0

%

Service

54.7

48.9

Total gross margin

64.5

%

59.4

%

Non-GAAP gross margin

Product

75.7

%

70.8

%

Service

58.1

53.3

Total non-GAAP gross margin

67.7

%

63.0

%

GAAP net income (loss) for the fourth quarter of 2017 was $2.7 million,
or $0.09 per share, compared to $(9.8) million, or $(0.36) per share in
the fourth quarter of 2016.

Three months ended December 31,

(in thousands except per share amounts)

2017

2016

Net income (loss)

$

2,659

$

(9,780

)

Net income (loss) per share

$

0.09

$

(0.36

)

Non-GAAP net income

$

9,002

$

49

Non-GAAP net income per share

$

0.29

$

0.00

Adjusted EBITDA

$

9,330

$

972

Deferred revenue at December 31, 2017, was $63.7 million compared to
$55.0 million at December 31, 2016. Cash equivalents and short-term
investments were $81.2 million at December 31, 2017 and $74.1 million at
December 31, 2016. The Company continues to have a strong balance sheet
with no debt.

Full Year and First Quarter 2018 Guidance

Beginning in the first quarter of 2018, the Company will adopt ASC 606,
the new revenue recognition accounting standard, on a fully
retrospective basis. As part of this accounting transition, a portion of
the Company’s opening deferred revenue balance that could have been
recognized in 2018, absent the adoption of ASC 606, will be reduced by
approximately $8 million and re-cast to prior reporting periods. The
Company’s re-cast financial statements for 2016 and 2017 are included in
the accompanying financial schedules.

The Company’s guidance reflects full year and first quarter 2018
estimates under ASC 606. For the first quarter of 2018, the Company
expects revenue between $37.0 million and $40.0 million and a GAAP loss
per share between $(0.31) and $(0.23). The Company expects non-GAAP net
loss per share to be between $(0.11) and $(0.03) and non-GAAP Adjusted
EBITDA to be between $(2.0) million and $0.3 million.

For the full-year 2018, the Company expects revenue between $175.0
million and $183.0 million and a GAAP loss per share between $(0.63) and
$(0.40). The Company expects non-GAAP net income per share to be between
$0.28 and $0.48 and non-GAAP Adjusted EBITDA to be between $14.0 million
and $20.0 million.

(in millions except per share amounts)

Q1’18

FY’18

Low

High

Low

High

Revenue

$

37.0

$

40.0

$

175.0

$

183.0

Loss per share

$

(0.31

)

$

(0.23

)

$

(0.63

)

$

(0.40

)

Diluted non-GAAP net income (loss) per share

$

(0.11

)

$

(0.03

)

$

0.28

$

0.48

Adjusted EBITDA

$

(2.0

)

$

0.3

$

14.0

$

20.0

Certain amounts in our release may not re-compute due to rounding. A
reconciliation of non-GAAP to GAAP financial measures, and first quarter
and full-year guidance, are included in the financial schedules.

Vocera will be at the 2018 HIMSS Annual Conference and Exhibition, March
6-8 in Las Vegas. During HIMSS18, attendees can visit the Vocera Booth
(#2824) for more information and product demonstrations, or email investorrelations@vocera.com
for a booth meeting.

Forward-Looking Statements

Statements in this press release that are not strictly historical in
nature are forward-looking statements within the meaning of the U.S.
federal securities laws, including statements regarding future events,
such as our ability to continue to execute on our business plans and
strategies and our expected operating results for the first quarter and
full year 2018. These forward-looking statements are based on limited
information currently available to us and our management's expectations,
which are inherently subject to change and involve a number of risks and
uncertainties.

Actual events or results may differ materially from those in any
forward-looking statement due to various factors, including but not
limited to, our ability to achieve anticipated strategic or financial
benefits from our acquisitions; changes in regulations in the U.S. and
other countries; the effects on government and commercial hospital
customers of the federal budget and budgetary uncertainty; changes in
healthcare insurance coverage and consumers’ utilization of healthcare
and hospital services; our ability to achieve and maintain
profitability; the demand for our various solutions in the healthcare
and other markets; our lengthy and unpredictable sales cycle; our
ability to offer high-quality services and support for our solutions;
our ability to acquire the sole and limited source hardware and software
components of our solutions; our ability to obtain the required capacity
and product quality from our contract manufacturer; our ability to
develop and introduce new solutions and features to existing solutions
and to manage our growth; the impact of tax law reform on us or our
customers; and the other factors described in our most recently filed
Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as well as
our other filings with the Securities and Exchange Commission (SEC). Our
filings with the SEC are available on the Investors section of the
Company’s web site at www.vocera.com.
The financial and other information contained in this press release
should be read in conjunction with the financial statements and notes
thereto included in our filings with the SEC. Our operating results for
any historical period, including the fourth quarter of 2017, are not
necessarily indicative of our operating results for any future periods.
This press release speaks only as of its date. We assume no obligation
to update the information in this press release, to revise any
forward-looking statements, or to update the reasons actual events or
results could differ materially from those anticipated in
forward-looking statements.

Use of Non-GAAP Financial Information

This press release contains financial measures that are not calculated
in accordance with U.S. generally accepted accounting principles (GAAP).
Our management evaluates the Company’s results and makes operating
decisions using various GAAP and non-GAAP measures. In addition to our
GAAP results, we also consider non-GAAP gross margin, non-GAAP gross
margin for products and for services, non-GAAP net income/(loss),
non-GAAP income/(loss) per diluted share and non-GAAP operating
expenses. We also present Adjusted EBITDA, a non-GAAP measure that we
reconcile to net income/(loss). These non-GAAP measures should not be
considered as a substitute for the corresponding financial measure
derived in accordance with GAAP. We present the non-GAAP measures
because we consider them to be important supplemental information for
our investors for analyzing our performance, core operating results and
trends. Investors are encouraged to review the reconciliation of
non-GAAP financial measures to their most directly comparable GAAP
measures included with this press release.

Our non-GAAP gross margins, non-GAAP net income/(loss), non-GAAP
earnings/(loss) per diluted share, non-GAAP operating expenses, and
Adjusted EBITDA are exclusive of certain items to facilitate
management’s review of the comparability of our core operating results
on a period to period basis because such items are not related to our
ongoing core operating results as viewed by management. We define our
“core operating results” as those revenues recorded in a particular
period and the expenses incurred within that period that directly drive
operating income in that period. Management uses these non-GAAP
financial measures in making operating decisions because, in addition to
meaningful supplemental information regarding operating performance, the
measures give us a better understanding of how we should invest in
research and development, fund infrastructure growth and evaluate the
effectiveness of marketing strategies. In calculating the above non-GAAP
results, management specifically adjusted for the following excluded
items:

a) Stock-based compensation expense impact. We recognize
equity plan-related compensation expenses, which represent the fair
value of all share-based payments to employees, including grants of
employee stock options and restricted stock units as non-GAAP
adjustments in each period.

b) Amortization of acquired intangibles. We acquired certain
companies in 2010, 2014 and 2016, and booked intangible assets related
to these acquisitions. The amortization of these acquired intangible
assets is excluded from non-GAAP net income because it is not related to
ongoing controllable management decisions and because it is non-cash in
nature.

c) Acquisition related expenses. In addition to the amortization
of acquired intangibles mentioned above, we also adjust for certain
acquisition-related expenses that we may incur including (i)
professional service fees and (ii) transition costs. Professional
service fees include third party costs related to the acquisition, such
as due diligence costs, accounting fees, legal fees, valuation services
and commissions, if any. Transition costs include retention payments,
transitional employee costs and earn-out payments (including amounts
relating to the distribution of purchase consideration among the selling
equity holders) treated as compensation expense. We consider such costs
and adjustments as highly variable in amount and frequency, being
significantly impacted by the timing and size of any acquisitions. By
excluding acquisition-related costs and adjustments from our non-GAAP
measures, management can better focus on the organic continuing
operations of our baseline and acquired businesses.

d) Restructuring costs. We exclude restructuring costs from
non-GAAP measures because we do not regard these limited-term or
one-time costs as reflective of normal costs we incur to operate our
business. These are defined in U.S. GAAP to include one-time employee
termination benefits, contract termination costs, and other associated
costs, with respect to exit or disposal activities.

Management adjusts for the above items because management believes that,
in general, these items possess one or more of the following
characteristics: their magnitude and timing is largely outside of
Vocera’s control; they are unrelated to the ongoing operation of the
business in the ordinary course; they are unusual and we do not expect
them to occur in the ordinary course of business; or they are
non-operational, or non-cash expenses involving stock award grants.

We believe that the presentation of these non-GAAP financial measures is
warranted for several reasons:

1) Such non-GAAP financial measures provide an additional analytical
tool for understanding our financial performance by excluding the impact
of items which may obscure trends in the core operating results of the
business;

2) These non-GAAP financial measures facilitate comparisons to the
operating results of other companies commonly compared to us, which use
similar financial measures to supplement their GAAP results, thus
enhancing the perspective of investors who wish to utilize such
comparisons in their analysis of our performance; and

3) These non-GAAP financial measures are employed by our management in
their own evaluation of performance and are utilized in financial and
operational decision making processes, such as budget planning and
forecasting.

i) While share-based compensation constitutes one of our ongoing and
recurring expenses, it is not an expense that requires cash settlement
by us. We therefore exclude these charges for purposes of evaluating
core operating results. Thus, our non-GAAP measurements are presented
exclusive of stock-based compensation expense to assist management and
investors in evaluating our core operating results.

ii) We present share-based payment compensation expense in our
reconciliation of non-GAAP financial measures on a pre-tax basis because
the exact tax differences related to the timing and deductibility of
share-based compensation are dependent upon the trading price of our
common stock and the timing and exercise by employees of their stock
options. As a result of these timing and market uncertainties, the tax
effect related to share-based compensation expense would be inconsistent
in amount and frequency and is therefore excluded from our non-GAAP
results.

As stated above, we present non-GAAP financial measures because we
consider them to be important supplemental measures of performance.
However, non-GAAP financial measures have limitations as an analytical
tool and should not be considered in isolation or as a substitute for
our GAAP results. In the future, we expect to incur expenses similar to
certain of the non-GAAP adjustments described above and expect to
continue reporting non-GAAP financial measures excluding such items.
Some of the limitations in relying on non-GAAP financial measures are:

Our stock options, restricted stock units, and stock purchase plans
are important components of incentive compensation arrangements and
will be reflected as expenses in our GAAP results for the foreseeable
future; and

Other companies may calculate non-GAAP financial measures differently
than us, limiting their usefulness as a comparative measure.

Pursuant to the requirements of SEC Regulation G, a detailed
reconciliation between our non-GAAP and GAAP financial results is set
forth in the financial tables referred to above, and linked to, this
press release. Investors are advised to carefully review and consider
this information strictly as a supplement to the GAAP results for the
respective periods.

About Vocera

The mission of Vocera Communications, Inc. is to simplify and improve
the lives of healthcare professionals and patients, while enabling
hospitals to enhance quality of care and operational efficiency. In
2000, when the company was founded, we began to forever change the way
care teams communicate. Today, Vocera continues to offer the leading
platform for clinical communication and workflow. More than 1,400
hospitals and health systems around the world have selected our
solutions for care teams to text securely using smartphones or make
calls with our hands-free, wearable Vocera Badge. Interoperability
between Vocera and more than 120 clinical systems helps reduce alarm
fatigue, speed up staff response times, and improve patient care, safety
and experience. In addition to healthcare, Vocera is at home in luxury
hotels, aged care facilities, nuclear facilities, libraries, retail
stores, and more. Vocera makes a difference in any industry where
workers are on the move and need to connect instantly with team members
and access resources or information quickly. In 2017, Vocera made the
list of Forbes 100 Most Trustworthy Companies in America. Learn more at www.vocera.com,
and follow @VoceraComm on Twitter.

The Vocera logo is a trademark of Vocera Communications, Inc. Vocera®
is a trademark of Vocera Communications, Inc. registered in the United
States and other jurisdictions. All other trademarks appearing in this
release are the property of their respective owners.

This adjustment reflects the accounting impact of acquisitions in
2010, 2014 and 2016 in non-cash expense.

(c)

This adjustment reflects the costs associated with the acquisition
in 2016.

Vocera Communications, Inc.

Non-GAAP Net income and net income per share and Adjusted EBITDA

(In thousands, except per share amounts)

(Unaudited)

Three months ended December 31,

Year ended December 31,

2017

2016

2017

2016

GAAP net income (loss)

$

2,659

$

(9,780

)

$

(14,217

)

$

(17,267

)

Add back:

Stock compensation expense

4,992

3,444

18,196

12,035

Acquisition related expenses

260

5,560

1,269

5,822

Interest income

(178

)

(97

)

(549

)

(627

)

Depreciation and amortization expense

1,888

1,499

7,643

3,770

Provision for income taxes

(291

)

346

759

529

Non-GAAP adjusted EBITDA

$

9,330

$

972

$

13,101

$

4,262

GAAP net income (loss)

$

2,659

$

(9,780

)

$

(14,217

)

$

(17,267

)

Add back:

Stock compensation expense

4,992

3,444

18,196

12,035

Intangible amortization

1,091

825

4,633

1,375

Acquisition related expenses

260

5,560

1,269

5,822

Non-GAAP net income

$

9,002

$

49

$

9,881

$

1,965

Net income per share

Basic

$

0.31

$

0.00

$

0.34

$

0.07

Diluted

$

0.29

$

0.00

$

0.33

$

0.07

Weighted average shares used to compute net income per share

Basic

29,317

27,409

28,655

26,859

Diluted

30,704

28,717

30,268

28,126

Vocera Communications, Inc.

Future guidance for operating results

(In millions, except per share amounts)

Reconciliation for GAAP to Non-GAAP for net income (loss) and net
income (loss) per share

Three months ended

Year ended

March 31, 2018

December 31, 2018

Low

High

Low

High

Revenue

$

37.0

$

40.0

$

175.0

$

183.0

GAAP net loss

(9.1

)

(6.9

)

(18.9

)

(11.9

)

Stock compensation expense

4.5

4.5

22.0

21.0

Intangible amortization expense

1.2

1.2

4.7

4.7

Acquisition and restructuring expense

0.3

0.3

1.0

1.0

Total adjustments

6.0

6.0

27.7

26.7

Non-GAAP net income (loss)

$

(3.2

)

$

(0.9

)

$

8.8

$

14.8

Weighted average shares (in thousands)

Basic

29,440

29,440

29,850

29,850

Diluted - GAAP

29,440

29,440

29,850

29,850

Diluted - Non-GAAP

29,440

29,440

31,150

31,150

GAAP net loss per share, basic and diluted

$

(0.31

)

$

(0.23

)

$

(0.63

)

$

(0.40

)

Non-GAAP net income (loss) per share :

Basic

$

(0.11

)

$

(0.03

)

$

0.30

$

0.50

Diluted

$

(0.11

)

$

(0.03

)

$

0.28

$

0.48

Reconciliation of Non-GAAP net income (loss) to adjusted EBITDA

Three months ended

Year ended

March 31, 2018

December 31, 2018

Low

High

Low

High

Non-GAAP net income (loss)

$

(3.2

)

$

(0.9

)

$

8.8

$

14.8

Interest income, net

(0.1

)

(0.1

)

(0.3

)

(0.3

)

Depreciation expense

0.8

0.8

3.5

3.5

Provision for income taxes

0.5

0.5

2.0

2.0

Total adjustments

1.2

1.2

5.2

5.2

Adjusted EBITDA

$

(2.0

)

$

0.3

$

14.0

$

20.0

* Amounts may not recompute due to rounding.

Vocera Communications, Inc.Condensed Consolidated
Statements of Operations and Condensed Consolidated Balance Sheets
Adjusted for the Adoption of the New Revenue Standard (ASC 606) on a
Fully Retrospective Basis

Vocera Communications, Inc.

Condensed Consolidated Statements of Operations Adjusted for the
Adoption of the New Revenue Standard

(In Thousands, Except Per Share Amounts)

(Unaudited)

As Adjusted

As Reported

Change

Year Ended December 31,

2017

2016

2017

2016

2017

2016

Revenue

Product revenue

Devices

$

61,508

$

50,546

$

60,869

$

50,061

$

639

$

485

Software

29,660

23,627

27,996

20,606

1,664

3,021

Total product

91,168

74,173

88,865

70,667

2,303

3,506

Service revenue

Maintenance and support

52,370

43,410

52,542

43,438

(172

)

(28

)

Professional services and training

21,723

14,388

21,141

13,591

582

797

Total service

74,093

57,798

73,683

57,029

410

769

Total revenue

165,261

131,971

162,548

127,696

2,713

4,275

Cost of revenue

Product

27,244

22,788

27,244

22,788

—

—

Service

37,683

26,287

37,683

26,287

—

—

Total cost of revenue

64,927

49,075

64,927

49,075

—

—

Gross profit

100,334

82,896

97,621

78,621

2,713

4,275

Operating expenses

Research and development

27,685

18,266

27,685

18,266

—

—

Sales and marketing

60,107

51,274

59,986

52,811

121

(1,537

)

General and administrative

23,970

24,499

23,970

24,499

—

—

Total operating expenses

111,762

94,039

111,641

95,576

121

(1,537

)

Income (loss) from operations

(11,428

)

(11,143

)

(14,020

)

(16,955

)

2,592

5,812

Interest income

604

684

604

684

—

—

Other income (expense), net

(42

)

(467

)

(42

)

(467

)

—

—

Income (loss) before income taxes

(10,866

)

(10,926

)

(13,458

)

(16,738

)

2,592

5,812

Provision for income taxes

(759

)

(529

)

(759

)

(529

)

—

—

Net income (loss)

$

(11,625

)

$

(11,455

)

$

(14,217

)

$

(17,267

)

$

2,592

$

5,812

Net income (loss) per share

Basic and diluted

$

(0.41

)

$

(0.43

)

$

(0.50

)

$

(0.64

)

$

0.09

$

0.21

Weighted average shares used to compute net income (loss) per share

Basic and diluted

28,655

26,859

28,655

26,859

28,655

26,859

Vocera Communications, Inc.

Condensed Consolidated Statements of Operations Adjusted for the
Adoption of the New Revenue Standard

Q1 2017

Q2 2017

Q3 2017

Q4 2017

As

As

As

As

As

As

As

As

(In Thousands, Except Per Share Amounts, Unaudited)

Adjusted

Reported

Change

Adjusted

Reported

Change

Adjusted

Reported

Change

Adjusted

Reported

Change

Revenue

Product revenue

Devices

$

14,013

$

14,121

$

(108

)

$

14,992

$

14,837

$

155

$

16,421

$

16,084

$

337

$

16,082

$

15,827

$

255

Software

5,997

5,912

85

5,948

5,821

127

9,489

7,165

2,324

8,226

9,098

(872

)

Total product

20,010

20,033

(23

)

20,940

20,658

282

25,910

23,249

2,661

24,308

24,925

(617

)

Service revenue

Maintenance and support

12,006

11,852

154

12,679

12,583

96

13,834

13,746

88

13,851

14,361

(510

)

Professional services and training

4,523

4,410

113

5,883

5,209

674

5,554

5,305

249

5,763

6,217

(454

)

Total service

16,529

16,262

267

18,562

17,792

770

19,388

19,051

337

19,614

20,578

(964

)

Total revenue

36,539

36,295

244

39,502

38,450

1,052

45,298

42,300

2,998

43,922

45,503

(1,581

)

Cost of revenue

Product

6,409

6,409

—

6,807

6,807

—

7,208

7,208

—

6,820

6,820

—

Service

9,155

9,155

—

9,962

9,962

—

9,241

9,241

—

9,325

9,325

—

Total cost of revenue

15,564

15,564

—

16,769

16,769

—

16,449

16,449

—

16,145

16,145

—

Gross profit

20,975

20,731

244

22,733

21,681

1,052

28,849

25,851

2,998

27,777

29,358

(1,581

)

Operating expenses

Research and development

6,929

6,929

—

7,371

7,371

—

6,644

6,644

—

6,741

6,741

—

Sales and marketing

14,922

14,581

341

15,246

15,377

(131

)

14,840

15,831

(991

)

15,099

14,197

902

General and administrative

5,695

5,695

—

5,984

5,984

—

6,088

6,088

—

6,203

6,203

—

Total operating expenses

27,546

27,205

341

28,601

28,732

(131

)

27,572

28,563

(991

)

28,043

27,141

902

Income (loss) from operations

(6,571

)

(6,474

)

(97

)

(5,868

)

(7,051

)

1,183

1,277

(2,712

)

3,989

(266

)

2,217

(2,483

)

Interest income

105

105

—

128

128

—

177

177

—

194

194

—

Other income (expense), net

109

109

—

(67

)

(67

)

—

(41

)

(41

)

—

(43

)

(43

)

—

Income (loss) before income taxes

(6,357

)

(6,260

)

(97

)

(5,807

)

(6,990

)

1,183

1,413

(2,576

)

3,989

(115

)

2,368

(2,483

)

Provision for income taxes

(380

)

(380

)

—

(361

)

(361

)

—

(309

)

(309

)

—

291

291

—

Net income (loss)

$

(6,737

)

$

(6,640

)

$

(97

)

$

(6,168

)

$

(7,351

)

$

1,183

$

1,104

$

(2,885

)

$

3,989

$

176

$

2,659

$

(2,483

)

Net income (loss) per share

Basic

$

(0.24

)

$

(0.24

)

$

—

$

(0.22

)

$

(0.26

)

$

0.04

$

0.04

$

(0.10

)

$

0.14

$

0.01

$

0.09

$

(0.08

)

Diluted

$

(0.24

)

$

(0.24

)

$

—

$

(0.22

)

$

(0.26

)

$

0.04

$

0.04

$

(0.10

)

$

0.13

$

0.01

$

0.09

$

(0.08

)

Weighted average shares used to compute net income (loss) per share

Basic

27,751

27,751

27,751

28,422

28,422

28,422

29,130

29,130

29,130

29,317

29,317

29,317

Diluted

27,751

27,751

27,751

28,422

28,422

28,422

30,473

29,130

30,473

30,704

30,704

30,704

Vocera Communications, Inc.

Condensed Consolidated Balance Sheets Adjusted for the Adoption
of the New Revenue Standard

(In Thousands, Unaudited)

As Adjusted

As Reported

Change

As of December 31,

2017

2016

2017

2016

2017

2016

Assets

Current assets

Cash and cash equivalents

$

28,726

$

35,033

$

28,726

$

35,033

$

—

$

—

Short-term investments

52,507

39,033

52,507

39,033

—

—

Accounts receivable, net

35,105

24,142

35,105

24,142

—

—

Other receivables

1,331

1,211

1,170

1,211

161

—

Inventories

2,815

4,556

2,815

4,556

—

—

Prepaid expenses and other current assets

3,957

3,364

3,957

3,364

—

—

Total current assets

124,441

107,339

124,280

107,339

161

—

Property and equipment, net

5,751

5,894

5,751

5,894

—

—

Intangible assets, net

13,567

18,200

13,567

18,200

—

—

Goodwill

49,246

49,246

49,246

49,246

—

—

Other long-term assets

11,968

11,816

1,667

1,394

10,301

10,422

Total assets

$

204,973

$

192,495

$

194,511

$

182,073

$

10,462

$

10,422

Liabilities and stockholders' equity

Current liabilities

Accounts payable

$

2,678

$

3,231

$

2,678

$

3,231

$

—

$

—

Accrued payroll and other current liabilities

14,689

15,896

14,689

15,896

—

—

Deferred revenue, current

41,516

38,247

47,276

43,845

(5,760

)

(5,598

)

Total current liabilities

58,883

57,374

64,643

62,972

(5,760

)

(5,598

)

Deferred revenue, long-term

14,417

11,523

16,438

11,155

(2,021

)

368

Other long-term liabilities

4,455

4,505

4,455

4,505

—

—

Total liabilities

77,755

73,402

85,536

78,632

(7,781

)

(5,230

)

Total stockholders’ equity

127,218

119,093

108,975

103,441

18,243

15,652

Total liabilities and stockholders’ equity

$

204,973

$

192,495

$

194,511

$

182,073

$

10,462

$

10,422

Vocera Communications, Inc.

Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share and
Adjusted EBITDA Adjusted for the Adoption of the New Revenue
Standard

(In Thousands, Except Per Share Amounts)

(Unaudited)

Year Ended December 31, 2017

Year Ended December 31, 2016

As

As

As

As

Adjusted

Reported

Change

Adjusted

Reported

Change

GAAP net income (loss)

$

(11,625

)

$

(14,217

)

$

2,592

$

(11,455

)

$

(17,267

)

$

5,812

Add back:

Stock compensation expense

18,196

18,196

—

12,035

12,035

—

Acquisition related expenses

1,269

1,269

—

5,822

5,822

—

Interest income

(549

)

(549

)

—

(627

)

(627

)

—

Depreciation and amortization expense

7,643

7,643

—

3,770

3,770

—

Provision for income taxes

759

759

—

529

529

—

Non-GAAP adjusted EBITDA

$

15,693

$

13,101

$

2,592

$

10,074

$

4,262

$

5,812

GAAP net income (loss)

$

(11,625

)

$

(14,217

)

$

2,592

$

(11,455

)

$

(17,267

)

$

5,812

Add back:

Stock compensation expense

18,196

18,196

—

12,035

12,035

—

Intangible amortization

4,633

4,633

—

1,375

1,375

—

Acquisition related expenses

1,269

1,269

—

5,822

5,822

—

Non-GAAP net income

$

12,473

$

9,881

$

2,592

$

7,777

$

1,965

$

5,812

Net income per share

Basic

$

0.44

$

0.34

$

0.09

$

0.29

$

0.07

$

0.22

Diluted

$

0.41

$

0.33

$

0.09

$

0.28

$

0.07

$

0.21

Weighted average shares used to compute net income per share

Basic

28,655

28,655

28,655

26,859

26,859

26,859

Diluted

30,268

30,268

30,268

28,126

28,126

28,126

Vocera Communications, Inc.

Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share and
Adjusted EBITDA Adjusted for the Adoption of the New Revenue Standard